more than 3,000,000 tons of raw sugar per year, and in addition imports manufactured sugar to the value of Es. 15 crores, yet the value of the sugar machinery imported was only a little over Es. 4J lakhs. Similarly, oil seeds worth nearly Es. 25 crores were exported ; but oil-crushing and refining plant to the value of only Es. 3 lakhs was imported. With paper and pasteboard imports worth Es. 160 lakhs, paper-mill machinery and plant worth only Es. 3-J- lakhs were imported. These figures are signi- ficant of the exiguity of the efforts hitherto made in India to replace imported articles by the manufacture of indigenous raw materials. On the other hand, the very large value of the imports of machinery for the textile industry is due to the entire absence in India of any engineering works capable of supplying her needs, and the consequent reliance on overseas sources for this all-essential need of our largest existing industry. The direction of Indian industrial development has been thus predeter- mined by the existence of a large export trade in raw materials, and by the ease with which most classes of manufactured articles could be imported from abroad. Other factors arising to some extent out of this general tendency, have helped to restrict Indian industrial progress in the past to an incomplete and limited development along the lines already indicated. 77. Where money has been invested in industries, it has generally Shyness of capital for keen confined to a few simple and safe enter- modern enterprises prises of an obviously attractive nature, whilst generally. equally important minor industries have been almost entirely neglected, partly through ignorance of the country's resources in raw materials, but mainly because commercial firms have prospered too well along conservative and stereotyped lines to trouble about undeveloped industries with uncertain prospects. Before the war, they could always be sure of importing all necessary stores and machinery of assured and regular quality, and they have naturally preferred a safe profit from trade, or from such established industries as jute and cotton manufacture, to a doubtful return from such ventures as metallurgical and chemical manufactures^ Another contributory cause has been the practice pursued by Government departments of indenting on the India Office for miscellaneous stores, which has been to some extent due to the absence of a stores-purchasing department in India. Government rules intended to encourage the purchase of locally manufactured articles have not succeeded in counteracting the tendency of indenting officers to place on some recognised authority the responsibility for "price and quality. Generally speaking, the industries based on technical science have been disregarded, because profits in other ways have been easy and assured. The neglect of applied science is perhaps the most conspicuous among our administrative deficiencies. 78. We have dealt in greater detail in Chapter X with the corre- . sponding dependence of India on imported Deflciencjs^industriai technologists and engineers. It was to this aspect of the question, as well as to the economic